Otsego Industries manufactured 300,000 units of product last year and identified the following costs associated with the manufacturing activity:

Required

Unit variable costs and total fixed costs are expected to remain unchanged in the following year. However, management expects a slowdown in sales, because of the economy in the following year. Calculate the unit cost and the total cost if 255,000 units are produced next year.

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123 4 2 Variable costs: 3 4 A Direct materials used Direct labor Indirect materials and supplies Power to run plant equipment 5 6 7 8 Fixed costs: 9 Supervisory salaries 10 11 Depreciation on plant and equipment Property taxes on building 12 13 Plant utilities (other than for plant equipment) B ($000) $6,120.0 4,060.0 1,420.0 1,300.0 $560.0 851.7 1,335.0 568.3